STXNEWS LATAM-Brazil's Santo Antonio says cash injection averts default

viernes 3 de octubre de 2014 19:25 GYT

Santo Antônio Energia, the consortium in charge of operating Brazil's fourth-largest energy producer, obtained on Friday a capital injection from its owner to settle a payment with the country's power industry clearinghouse CCEE. In a securities filing, the board of Santo Antônio summoned a shareholders' meeting to discuss a capital increase worth 1.59 billion reais ($647 million). Proceeds from the deal will help pay the debt with the CCEE and liabilities with the group that is building the project, the filing added.

For weeks, local media reported the difficulties facing Santo Antônio as project cost overheads and volatile spot electricity prices weighed down the company's finances.

Madeira Energia SA, Santo Antônio's only shareholder, is comprised of state-run Furnas Centrais Elétricas SA, a private-equity fund vehicle controlled by state-run lender caixa Econômica Federal, Odebrecht Energia do Brasil, Andrade Gutierrez SA and Cemig Geração e Transmissão.

($1 = 2.4573 Brazilian reais)